401(k) 457 Plan Highlights - Account Login

OVERVIEW

ENROLL

CONTRIBUTIONS

HEALTH CARE COSTS

BENEFICIARIES

MANAGE ACCOUNT

LOANS WITHDRAWALS

LEAVING EMPLOYMENT

ADDITIONAL

State of Michigan 401(k) & 457 Plan Highlights

Saving Today, Planning for Tomorrow

The State of Michigan provides competitive retirement and health care benefits and encourages you to take full advantage of them to plan for your future. This Plan Highlights guide provides you with useful plan information and resources to help you and your family make sound retirement decisions.

The State offers a series of retirement plans that provide you with a choice of how you save for retirement, including both pre-tax and after-tax Roth options. ? The State of Michigan 401(k) Plan for pre-tax contributions ? The State of Michigan Roth 401(k) Plan for after-tax contributions ? The State of Michigan 457 Plan for pre-tax contributions

Who Should Use This Guide: Defined Contribution (DC) -- Personal Healthcare Fund Members

For more details about who this e-book applies to, please return to the Plan Information page at

Questions? Need More Information?

This document has helpful links to more detailed information if you need it.

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DC With Personal Healthcare Fund 3030425.G.P (2/15)

Questions? Call the Plan Information Line at 1-800-748-6128.

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OVERVIEW

ENROLL

CONTRIBUTIONS

HEALTH CARE COSTS

BENEFICIARIES

MANAGE ACCOUNT

LOANS WITHDRAWALS

LEAVING EMPLOYMENT

ADDITIONAL

State of Michigan 401(k) & 457 Plan Highlights

How Enrollment Works

The State offers you the flexibility to customize your long-term investment strategy based on your individual needs and tax situation. You may choose one plan, or a combination of plans, as you see fit.

Employees are Automatically Enrolled

Because the State of Michigan supports your efforts to achieve retirement readiness, State employees are automatically enrolled when they become eligible for the 401(k) Plan.

? State employees are automatically enrolled on their hire or rehire date at a 5% contribution into the pre-tax 401(k) plan. You can sign up for an additional employee pre-tax or after-tax Roth contribution.

? This contribution is invested in a SSgA Target Retirement Fund (based on date of birth and an anticipated retirement age of 65). You may change your contribution and investment options at any time.

? Employees will automatically receive password information from Voya Financial? in the mail for online access to their accounts to make contribution and investment changes, or to contribute to } the 457 plan.

? You can confirm the amount coming out of your pay by reviewing your Statement of Earnings and Deductions on MI-HR Self-service. If you have questions about enrollment you can call the Plan Information Line at 1-800-748-6128.

Additional Retirement Savings Plan Opportunities

The State also offers an after-tax Roth 401(k). If you are looking for the most in plan flexibility and trying to shelter as much of your income from current taxes, the State of Michigan offers a 457 Plan. The 457 Plan has many of the same features as the pre-tax 401(k), but also some key differences. See Key Features for more details on the differences between the 401(k) and 457 Plans.

Manage Your Investments

To learn about your investment options go to Fund Information. To choose different investment options after you are automatically enrolled, log in to your account and go to Manage Investments under My Account. To learn more about investing, be sure to take advantage of our resources, such as:

? Free information seminars

? Investment advice offered by the Voya Advisory Service and Financial Engines

DC With Personal Healthcare Fund 3030425.G.P (2/15)

Questions? Call the Plan Information Line at 1-800-748-6128.

2

OVERVIEW

ENROLL

CONTRIBUTIONS

HEALTH CARE COSTS

BENEFICIARIES

MANAGE ACCOUNT

LOANS WITHDRAWALS

LEAVING EMPLOYMENT

ADDITIONAL

State of Michigan 401(k) & 457 Plan Highlights

How Contributions Work

Contributions are made conveniently through payroll deduction, and the State also makes contributions on your behalf. By working together, our goal is to help you achieve sufficient income in retirement.

Supporting Your Efforts to Save

Starting with your very first paycheck, the State of Michigan begins contributing an amount equal to 4% of your pay into an account established for you in the State of Michigan 401(k) Plan. In addition, the State matches dollar for dollar the first 5% of your contributions each pay period.

Innovative Approach Toward Both Retirement and Retiree Medical Expenses

You were enrolled automatically into the 401(k) Plan at a 5% contribution rate.

? The first 3% of your contributions and State match are identified as retirement savings.

? The next 2% of both are directed to a Personal Healthcare Fund (PHF), designed to help you pay for medical expenses in retirement.

? Your contributions are automatically invested in one of the SSgA Target Retirement Funds, based on your date of birth and assuming you will retire at age 65 until you direct otherwise. You may change your contribution and/or investment options at any time.

You can make contributions to any combination of the pre-tax 401(k), pre-tax 457, or Roth 401(k) Plans, receiving a match on your first 5%. You may contribute any percentage you wish to any plan, as long as you do not exceed the annual contribution limits.

The Power of the Match

Type of Contribution

State of Michigan contribution to the 401(k) Defined Contribution Plan Retirement Savings Automatic enrollment level PHF Savings Automatic enrollment level Total Grand total working for you!

You

State

__

4%

3%

3%

2%

2%

5%

9%

14%

DC With Personal Healthcare Fund 3030425.G.P (2/15)

Questions? Call the Plan Information Line at 1-800-748-6128.

3

OVERVIEW

ENROLL

CONTRIBUTIONS

HEALTH CARE COSTS

BENEFICIARIES

MANAGE ACCOUNT

LOANS WITHDRAWALS

LEAVING EMPLOYMENT

ADDITIONAL

State of Michigan 401(k) & 457 Plan Highlights

Contributions (continued)

Take Advantage of The Catch-Up Opportunity If You Are Over 50

If you'll be 50 or older this year, you're eligible to make catch-up contributions in the Plans. This is a good opportunity to make up for years you may not have been able to contribute. If you are at least age 50 by the end of the calendar year, your contributions will automatically be allowed up to the maximum catch-up limit. If you have questions or want to make a catch up contribution, call 1-800-748-6128.

? In the 457 Plan, if you have not made the maximum contribution in prior years, you may be eligible for the Traditional Catch-Up Contribution. This allows you to contribute up to twice the annual dollar limit for the three calendar years prior to the year in which you become eligible for normal retirement benefits (between age 50 and age 70?). If you wish to take advantage of the Traditional Catch-Up Contribution, you must call the Plan Information Line at 1-800-748-6128.

? You may not participate in the Over 50 Catch-Up and the 457 Traditional Catch-Up during the same calendar year in the 457 Plan.

Vesting

To be vested is to legally own the money in your account. You are immediately 100% vested in your own contributions and any earnings on those contributions. For participants in the 401(k) Plan, the State of Michigan contributions made on your behalf are vested according to the table below.

Employer Contributions Are Vested As Follows:

Years of Service* After 1 Year After 2 Years After 3 Years After 4 Years

Percent Vested 0% 50% 75% 100%

*A year of service is defined as 2080 hours.

Consolidating Your Retirement Assets

If you have a retirement plan balance from previous employment, you may be able to transfer or roll over this balance into your 401(k) or 457 Plan account.

? 401(k) Plan: Balances from an eligible retirement plan such as a 401(a), 401(k), 403(b), Roth 401(k), Traditional IRA or SEP-IRA may be rolled over into the 401(k) Plan

? 457 Plan: Only approved balances from other governmental 457(b) plans may be transferred into the 457 Plan

To request a Rollover Contribution, you must complete a Rollover Contribution Form or Roth Rollover Contribution Form. For assistance, you may also contact the Plan Information Line and speak with a Customer Service Associate.

DC With Personal Healthcare Fund 3030425.G.P (2/15)

Questions? Call the Plan Information Line at 1-800-748-6128.

4

OVERVIEW

ENROLL

CONTRIBUTIONS

HEALTH CARE COSTS

BENEFICIARIES

MANAGE ACCOUNT

LOANS WITHDRAWALS

LEAVING EMPLOYMENT

ADDITIONAL

State of Michigan 401(k) & 457 Plan Highlights

Getting Ready for Health Care Costs in Retirement

The State supports your efforts to save for health care costs in retirement through the Personal Healthcare Fund (PHF). Planning for medical expenses in retirement is an important part of your overall retirement savings plan, because unexpected health care expenses could derail your overall strategy.

For many Americans, health care is likely to be one of their largest expenses in retirement. Why? Because not only do medical costs continue to rise each year, programs such as Medicare only cover a portion of what you might need to cover your care. Even if you are healthy when you retire, health care costs later in your retirement can erode your savings.

Typical Costs

Health Care Assisted Living Nursing homes Home health aid

Cost $3,300/month

$200+/day $18 - $19/hour

Source: Genworth Cost of Care Survey, 2012

With people living longer all the time, health care is a key consideration in retirement income planning. It's smart to plan for medical expenses now, while you are still working, so you can take advantage of time and compounding. To learn more or for access to resources to help you plan, call 1-800-748-6128.

How Much a Typical Couple May Need to Budget for Health Care in Retirement

? Major medical coverage

? Deductibles and co-insurance

? Prescriptions

? Long-term illness

? Chronic conditions

? Assistance and caregiving

Source: OptumHealth Financial, a United Healthcare

CToomtpaanly, EApsritl i2m013ate: $270,000

Source: OptumHealth Financial, a United Healthcare Company, April 2013

DC With Personal Healthcare Fund 3030425.G.P (2/15)

Questions? Call the Plan Information Line at 1-800-748-6128.

5

OVERVIEW

ENROLL

CONTRIBUTIONS

HEALTH CARE COSTS

BENEFICIARIES

MANAGE ACCOUNT

LOANS WITHDRAWALS

LEAVING EMPLOYMENT

ADDITIONAL

State of Michigan 401(k) & 457 Plan Highlights

Don't Forget to Name Your Beneficiaries

It's important to name beneficiaries for your 401(k) and 457 Plans so that in the event of your death, your savings will be distributed the way you want. Here's how it works:

? You may have the same beneficiary for both the 401(k) and 457 Plans, or you can have different beneficiaries for each Plan.

? You can change your designated beneficiary whenever you need to online. ? If you have a balance in both the 401(k) and 457 Plans, you will need to complete beneficiary information

for each Plan. ? Beneficiary elections may also be made through written request using the Designation of Beneficiary form. ? Paper beneficiary forms are required if you are married and you wish to name someone other than your spouse

as your primary beneficiary in the 401(k) Plan, since your spouse must provide consent. This form is available on the Plan Web site or by calling the Plan Information Line at 1-800-748-6128.

Do you know who your beneficiaries are?

DC With Personal Healthcare Fund 3030425.G.P (2/15)

Questions? Call the Plan Information Line at 1-800-748-6128.

6

OVERVIEW

ENROLL

CONTRIBUTIONS

HEALTH CARE COSTS

BENEFICIARIES

MANAGE ACCOUNT

LOANS WITHDRAWALS

LEAVING EMPLOYMENT

ADDITIONAL

State of Michigan 401(k) & 457 Plan Highlights

Pay Attention to Your Account

One of the best ways to stay on top of your account is to take a hands-on approach.

? Account statements -- Quarterly statements are mailed about two weeks after the end of each quarter. It is very important for you to review your statement each time you get it. These statements summarize your transactions, account balance and investment performance. The statements also list your contribution rates, plan administration fees ($10.25 per quarter) and beneficiary elections. You may choose to receive your statements electronically.

? Online -- You can access account information online at anytime. ? By Phone -- When you have questions about your account, you can call the Plan Information Line at

1-800-748-6128. ? You can access your Plan account using -- Your iPhone, iPod touch or AndroidTM device. Download the

free app directly from the App StoreSM or the GoogleTM play store (keywords: Voya Retire).

Quarterly Newsletter

Each quarter you will receive a newsletter along with your account statement that includes important plan information, updates about any changes in the plans, or the effect of new laws on the plans. This newsletter is the primary way the State of Michigan communicates with plan participants, so please read your newsletter.

iPhone, iPod touch are trademarks of Apple, Inc., registered in the U.S and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.

Save Some Trees

Many participants are choosing to receive their statements and confirmations electronically. Go to the Preferences section of your online account to add your email address, select your preferred delivery options and you will be notified when your statement is available.

DC With Personal Healthcare Fund 3030425.G.P (2/15)

Questions? Call the Plan Information Line at 1-800-748-6128.

7

OVERVIEW

ENROLL

CONTRIBUTIONS

HEALTH CARE COSTS

BENEFICIARIES

MANAGE ACCOUNT

LOANS WITHDRAWALS

LEAVING EMPLOYMENT

ADDITIONAL

State of Michigan 401(k) & 457 Plan Highlights

Loans

Plan loans are available if you occasionally need access to your money for non-recurring financial needs. Bear in mind that the size and frequency of loans may affect the amount of money you will have at retirement. It's always a good idea to stay fully invested until retirement to improve your chances of retirement readiness.

Applying for a Loan

You can borrow from your 457 or 401(k) Plan account and pay yourself back with interest through after-tax payroll deductions.

? Two Types of Loans -- General loans have a repayment period of 2 months to 60 months. Residential loans are designed to help you purchase your primary residence and have a repayment period of 61 to 360 months. Proof of purchase is necessary to qualify for a residential loan.

? Loan Amounts -- The minimum loan amount allowed is $1,000. The maximum loan amount allowed is 50% of your vested account balance up to $50,000, minus your highest outstanding loan balance in the last 12 months and any defaulted loan balances, including accrued interest on defaulted loans.

? Interest Rate -- The interest rate for loans is the Prime Rate as quoted in the Wall Street Journal on the first day of the month prior to the month in which you request a loan.

Considering a Loan?

Although a loan is available if you need it, remember it's always a good idea to stay fully invested until retirement. To apply for or learn more about loans, call the Plan Information Line at 1-800-748-6128.

DC With Personal Healthcare Fund 3030425.G.P (2/15)

Questions? Call the Plan Information Line at 1-800-748-6128.

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